Transactions costs refer to
A)the implicit costs of production.
B)the costs in time and other resources that parties incur in the process of agreeing to and carrying out an exchange of goods or services.
C)the raw material cost of production.
D)the cost of transporting goods from one destination to another.

Question

Quizplus · Accepted Answer

Transactions costs refer to the costs incurred in the process of an exchange of goods or services. This includes time, resources, and other costs associated with negotiating and carrying out the transaction. This is different from the cost of raw materials or transportation, which are separate elements of production.

Transactions Costs Refer to